ADAM.L Regulatory News (ADAM)

Adamas Finance Asia Limited

("ADAM" or the "Company")

Increased Ownership in Hong Kong Mining Holdings Limited ("HKMH")

Adamas Finance Asia Limited (AIM: ADAM), a London quoted pan-Asian diversified investment vehicle, is pleased to announce the increase of the Company's indirect shareholding in HKMH from 79.26% to 84.81%.

The Company has issued 4,277,568 new ordinary shares of no par value each ("New Ordinary Shares") at US$1.20 per share in consideration for the acquisition of shares in HKMH held by certain minority shareholders (the "Vendors") (the "Acquired Interests") and the waiving of the repayment of certain loans to HKMH by the Vendors; further details are set out below. A further 319,694 Ordinary Shares will be issued to one of the Vendors in two equal tranches in 12 months and 24 months. The investment in HKMH is held via ADAM's wholly owned subsidiary, Dynamite Win Limited ("Dynamite Win").

HKMH is a natural resources company whose primary asset is a large dolomite magnesium limestone mine that has 113.4 million tonnes of ore reserve. The mine is located in the province of Shanxi, China where HKMH is in the process of restarting operations. In the year ended 31 December 2016, HKMH reported an unaudited consolidated loss before tax of HK$3.826 million (approximately US$497,000). As at 30 June 2017, ADAM's holding of 10.95% in HKMH was valued at US$8.7 million, implying a gross value of HKMH of US$79.5 million. On that basis the value of the Acquired Interests is US$4.41 million.

ADAM has entered into agreements with the Vendors to transfer their shareholdings in HKMH to the Company in exchange for the New Ordinary Shares. The Vendors shall also waive repayment of outstanding loans to HKMH subsidiaries totalling HK$41.9 million (approximately US$5.36 million).

The Company has, therefore, today allotted 4,277,568 new Ordinary Shares which will rank pari passu in all respects with the existing Ordinary Shares.

Application has been made for the New Ordinary Shares to be admitted to trading on AIM which is expected to occur on or around 4 April 2018.

Following the issue of the New Ordinary Shares, the Company's enlarged issued share capital comprises 81,064,373 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure of 81,064,373 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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About Adamas Finance Asia

ADAM is a London quoted investment company focusing on delivering long-term income and capital growth to shareholders through a diverse portfolio of pan-Asian investments. It aims to provide uncorrelated returns through a combination of capital growth and dividend income from a broad spectrum of national geographies and asset classes.

The Company's investment manager, Harmony Capital, which has a dedicated team with real Asian expertise, is focused on the strategy of creating income and capital growth. Harmony is sourcing predominately private opportunities and has created a strong pipeline. Income generating assets include investments in property, mining, pharmaceuticals, and telecoms across Asia.